High Economic Values from High Peaks of the West
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View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by Research Papers in Economics Western Economics Forum, Spring 2007 High Economic Values from High Peaks of the West Catherine M. Keske and John B. Loomis1 Introduction The geography of the West provides many distinguishing features, including wide open spaces, extensive public lands, and the crown jewels of the National Parks System such as Yellowstone. Soaring peaks of the West like Mt. Rainier, Mt. Hood, Grand Tetons, and Pikes Peak are also towering symbols of their respective Western states. While these mountains are clearly a source of regional pride, they have also provided national inspiration for songs like “America the Beautiful” and renowned artwork like Ansel Adams’ photography and paintings by Albert Bierstadt. The presence of these high peaks in the Sierra Nevada Mountains, the Cascades and the Rocky Mountains also serve as a symbol of the beautiful Western landscape and the high quality of life enjoyed by many residents in the West. Residents report that a contributing factor to their perceived high quality of life in Western States is the rural character of their communities, scenic beauty, and access to recreation opportunities afforded by the region (Rudzitis and Johansen 1989; Inman, McLeod and Menkhaus 2002). However, the value of mountain scenic amenities and recreational opportunities is neither limited to residents, nor passive recreational uses. These high peaks are often the highlight of a trip to the West for many visitors from the Midwest and Eastern United States. Furthermore, residents and non- residents alike aspire to rise to the physical and mental challenge to climb and summit these peaks and to gaze down on the amazing vistas below. For those living in the lowlands, climbing these peaks usually involves months of training, and is often the fulfillment of a lifetime dream. For example, according to the American Alpine Club’s 2005 report, on Mt. Rainier, the number of annual climbers has increased from 300 in the early 1950s to over 11,000 in the first half of this decade. For Alaska’s Mt. McKinley, the annual numbers rose from less than 50 in the early 1960s to over 1,200 this decade (Athearn 2005). Climbing high peaks involves significant risks to life and limb as well, testament to the high value people place on climbing them. Clearly, standing on the summit of these peaks gives an incomparable sense of accomplishment not otherwise available in our world of increasingly virtual reality. An interesting question is whether the long distance travel, months of training, and great effort required to climb these peaks translates into a high visitor willingness to pay for visitors to these high elevation recreation areas. In other words, do high peaks yield high economic value? We attempt to answer this question using a data set of visitors to the 54 Colorado 14,000 foot peaks (otherwise known as Fourteeners), which also serve as a goal for peak baggers. In order to determine the value that recreationists and peak baggers place on the Colorado Fourteeners, we use an expenditure summary and a contingent valuation model to determine the regional expenditures and consumer surplus, respectively. Based upon our study, we draw implications and suggest these results may provide some insights regarding the high values of other high peaks of the Western United States. 1 Keske is Assistant Professor and Loomis is Professor, Department of Agricultural and Resource Economics, Colorado State University. The authors would like to thank Sarah Gorecki of the Colorado Fourteeners Initiative for assisting with the data collection and survey design. The authors would also like to thank, without implicating, two anonymous reviewers for suggestions clarifying several points in the paper. 34 Western Economics Forum, Spring 2007 Background Information on Colorado Fourteeners This next section describes the distinguishing features of Colorado Fourteeners, the data, methods, and results of our study. The Colorado Fourteeners are nestled in six of the state’s mountain ranges. Most of the peaks are on public lands, including wilderness areas, but several peaks are located on private lands, yielding a variety of access issues, which are summarized in Table 1. Table 1. Colorado Fourteen Thousand Foot Peaks and Degree of Accessibility. Range Private Peaks Access Permitted 10-Mile/ Bross Closed Mosquito Democrat Closed Lincoln Closed Quandary (parts) YES--trail re-routed to avoid private land Sherman YES--but future access debated Elk All Public: Capitol, Castle, North Maroon, Pyramid, Snowmass, South Maroon Front All Public: Bierstadt, Evans, Grays, Longs, Pikes, Torreys Note: Evans and Pikes also have paved roads to summits Sangre de Cristo Culebra Fee for Access Crestone Group YES--Pending access issues across private lands Little Bear Peak YES--trail re-routed to avoid private land Mt. Lindsey YES All Public: Blanca Peak, Crestone Peak, Crestone Needle Ellingwood Point, Humbolt Peak, Kit Carson San Wilson Peak Closed Juan All Public: El Diente, Eolus, Handies, Mt. Wilson, Redcloud, San Luis Sneffels, Sunlight, Sunshine, Uncompahgre, Wetterhorn Windom Sawatch All Public: Antero, Belford, Columbia, Elbert, Harvard, Huron, LaPlata Massive, Missouri, Mt. of the Holy Cross, Oxford Princeton, Shavano, Tabeguache, Yale These mountain ranges are located in different regions of the state, presenting a unique set of physical characteristics, cultural dynamics, and recreational and economic opportunities. Figure 1 illustrates mountain range location, and the unique characteristics of the six mountain ranges are summarized below. 35 Western Economics Forum, Spring 2007 Figure 1. Colorado Fourteener Ranges. Front Range The Front Range peaks consist of six popular peaks extending from Estes Park and slightly west of Denver down to Colorado Springs. Due to their close proximity to the metropolitan communities, the Front Range peaks attract both Colorado tourists and urbanites. Two of these peaks can be accessed by paved roads as well as hiking trails. 10-Mile and Mosquito Gulch The five peaks that make up this range are located from 5 to 30 miles southwest of the Breckenridge ski resort. All of the five peaks have areas that are privately owned; however, three peaks (Mounts Lincoln, Democrat, and Bross) were closed to the public in July 2005 by private landowners who expressed liability concerns about the large numbers of recreationists on the land. The 10-Mile and Mosquito Gulch peaks are situated in what was at one time the heart of the Colorado mining industry. Sawatch The Sawatch Range is centrally located in the state. The range consists of 15 peaks, including the well-known “Collegiate Peaks”, infamously named after several Ivy League schools. The Sawatch Range appeals to recreationists who are interested in more than just “peak bagging”. Camping and more diverse recreational opportunities like river rafting and off-road vehicle paths abound. Elk The Elk Mountains are located in north central Colorado, near the popular resort town of Aspen. Rugged and picturesque, these six Elk Mountain peaks attract serious rock climbers, as well as photographers and tourists from Aspen. 36 Western Economics Forum, Spring 2007 San Juans The San Juan mountain range consists of 12 eclectic peaks that offer a range of recreation experiences, including off-highway vehicles, and railroad access. Located in the southwest corner of the state, the San Juans have less foot traffic than the Front Range peaks, but attract a number of out-of-state tourists. At this writing, one peak in the San Juans, Wilson Peak, is privately owned and is off limits to the public. The landowner also maintains that Wilson Peak is rich with mineral deposits. Sangre de Cristo The Sangres, as they are often called, are located in the south central to southeast region of the state. These 10 rugged peaks present varying levels of difficulty. One peak, Culebra, is privately owned. The most recent owner of this property, which includes a ranch, the Culebra Peak trail and summit, as well as a “Thirteener”, charges admission to access the peak and the rest of the property. Data Sources Approximately 840 mail-back surveys were distributed during the summer of 2006 in a stratified sample of Fourteener peaks throughout Colorado. The stratification follows the grouping of peaks and the mountain ranges listed above. Input from several non-profit organizations such as the Colorado Fourteeners Initiative and the Colorado Mountain Club ensured that survey peaks properly represented the mountain ranges, in both terrain and visitor use patterns. We approached hikers and other visitors at the trailhead and in the parking lot at the conclusion of their recreation activity. After providing the visitors with the Fourteener survey packet, and a postage paid return envelope, we collected follow-up information for survey mailings to non- respondents. In total 520 surveys have been returned, for a response rate of 62%. Results The importance of these Fourteeners as a trip destination is evident from the fact that more than two-thirds of visitors had these peaks as the sole or primary purpose of their trip from home, and 23% had it as one of many equally important trip purposes. In the authors’ experience from conducting numerous recreation surveys over the past two decades, this is a high percentage of primary purpose and equal purpose trips. In addition, one-third of the visitors to these peaks were from out of state. Table 2 provides estimates of visitor expenditures shown by per group-per trip, per group-per day, and per person-per day, respectively. We asked individuals to report group expenditures for the entire state of Colorado. We then we divided by the number of people in the group to determine individual expenditure data and then by average length of stay to put it on a day basis. 37 Western Economics Forum, Spring 2007 Table 2.